Canada's Childcare Funding Model Is Falling Short on Quality, Workforce Stability, and the Supports Children Need

ACE calls on the federal government to align CWELCC funding with the true cost of delivering quality care ahead of agreement renewals

CALGARY, AB, CANADA, March 2, 2026 /EINPresswire.com/ -- As federal and provincial governments prepare to negotiate the next phase of Canada-Wide Early Learning and Childcare (CWELCC) agreements, the Association of Canadian Early Learning Programs (ACE) is urging decision-makers to confront a fundamental problem: the current funding model does not cover the cost of delivering the quality of care Canadian families were promised.

Licensed childcare operators across the country report being forced to reduce programming, limit inclusion supports for children with diverse needs, defer investments in learning environments, and cut back on the professional development that keeps educators engaged and effective. At the same time, early childhood educators continue to leave the profession for better-compensated work in other sectors, deepening a workforce crisis that directly affects every family seeking care.

"The funding gap is not an abstract policy problem. It shows up every day in classrooms," said Krystal Churcher, Board Chair of ACE. "It shows up when an operator can't offer competitive wages and loses a trained educator. It shows up when a program has to scale back inclusive supports because the budget won't stretch. It shows up when families are told there's a space available, but the quality of that space isn't what it should be."

ACE's True Cost of Childcare report found that funding can fall short by as much as $900 per child per month when quality programming, adequate staffing, inclusion supports, and fair educator compensation are factored into operating costs. That gap is not being absorbed. It is being passed on in the form of reduced quality, longer waitlists, and educator burnout.

ACE fully supports the goal of affordable childcare for Canadian families. But the next round of agreements must be built on honest numbers, not the same assumptions that have already shown cracks in provinces from coast to coast.

"Before any government signs a renewed agreement, there needs to be a clear-eyed assessment of what quality childcare actually costs to deliver," Churcher said. "The data exists. The sector has done the work. What's missing is a willingness to use it."

ACE is calling on the federal government to undertake an independent review of CWELCC funding adequacy and to include frontline operators in the design of renewed agreements, ensuring the next phase of the program is grounded in financial reality and focused on outcomes for children and families.
To read the full report or join ACE's call to action, visit www.acenational.ca.

About ACE:
The Association of Canadian Early Learning Programs (ACE) is a united coalition of licensed childcare providers representing home-based programs, non-profits, and private centres across Canada. ACE advocates for childcare policies that are sustainable for providers, accessible to all families, and respectful of the professionals delivering care every day. For more information, visit www.acenational.ca.

Krystal Churcher, Chair
The Association of Canadian Early Learning Programs (ACE)
+ +1 780-838-3103
kchurcher@acenational.ca
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